Correlation Between Hangzhou Pinming and Shanghai Newtouch
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By analyzing existing cross correlation between Hangzhou Pinming Software and Shanghai Newtouch Software, you can compare the effects of market volatilities on Hangzhou Pinming and Shanghai Newtouch and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hangzhou Pinming with a short position of Shanghai Newtouch. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Pinming and Shanghai Newtouch.
Diversification Opportunities for Hangzhou Pinming and Shanghai Newtouch
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Hangzhou and Shanghai is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Pinming Software and Shanghai Newtouch Software in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Newtouch and Hangzhou Pinming is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hangzhou Pinming Software are associated (or correlated) with Shanghai Newtouch. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Newtouch has no effect on the direction of Hangzhou Pinming i.e., Hangzhou Pinming and Shanghai Newtouch go up and down completely randomly.
Pair Corralation between Hangzhou Pinming and Shanghai Newtouch
Assuming the 90 days trading horizon Hangzhou Pinming Software is expected to generate 0.84 times more return on investment than Shanghai Newtouch. However, Hangzhou Pinming Software is 1.19 times less risky than Shanghai Newtouch. It trades about 0.0 of its potential returns per unit of risk. Shanghai Newtouch Software is currently generating about -0.02 per unit of risk. If you would invest 2,734 in Hangzhou Pinming Software on October 16, 2024 and sell it today you would lose (529.00) from holding Hangzhou Pinming Software or give up 19.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Pinming Software vs. Shanghai Newtouch Software
Performance |
| Timeline |
| Hangzhou Pinming Software |
| Shanghai Newtouch |
Hangzhou Pinming and Shanghai Newtouch Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Pinming and Shanghai Newtouch
The main advantage of trading using opposite Hangzhou Pinming and Shanghai Newtouch positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Pinming position performs unexpectedly, Shanghai Newtouch can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shanghai Newtouch will offset losses from the drop in Shanghai Newtouch's long position.| Hangzhou Pinming vs. Beijing Yanjing Brewery | Hangzhou Pinming vs. Vats Liquor Chain | Hangzhou Pinming vs. Tonghua Grape Wine | Hangzhou Pinming vs. Sportsoul Co Ltd |
| Shanghai Newtouch vs. China World Trade | Shanghai Newtouch vs. Anyang Iron Steel | Shanghai Newtouch vs. Grandblue Environment Co | Shanghai Newtouch vs. Zhengzhou Qianweiyangchu Food |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Managers module to screen money managers from public funds and ETFs managed around the world.
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